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SquirrelEStuff's avatar

Has anyone read Gold and Economic Freedom written by Alan Greenspan in 1967?

Asked by SquirrelEStuff (6665 points ) March 7th, 2009

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How about your thoughts on this line specifically:
The excess credit which the Fed pumped into the economy spilled over into the stock market—triggering a fantastic speculative boom. Belatedly, Federal Reserve officials attempted to sop up the excess reserves and finally succeeded in braking the boom. But it was too late: by 1929 the speculative imbalances had become so overwhelming that the attempt precipitated a sharp retrenching and a consequent demoralizing of business confidence. As a result, the American economy collapsed. Great Britain fared even worse, and rather than absorb the full consequences of her previous folly, she abandoned the gold standard completely in 1931, tearing asunder what remained of the fabric of confidence and inducing a world-wide series of bank failures. The world economies plunged into the Great Depression of the 1930’s.

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1 Answer

miasmom's avatar

Sounds familiar!

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